Question

In country X, the unemployment rate is 13%,
the interest rate is 19% and the GDP growth
rate is 3%. The goal is 5-5-5, i.e., 5% inflation
rate, 5% unemployment rate and 5% GDP
growth. Assume that you are the Minister of
Economics
Do you think you can achieve this goal using
a single policy instrument? Why or why not?

Which policy or policy mix would you use to
achieve the 5-5-5 goal? Please explain the
policy or the policy mix, clarify the policy
instrument you would use, and discuss how
it/they would work to achieve the goal​

Answer 1

Answer:

Unemployment is typically described in newspaper or television reports as a percentage or a rate. A recent report might have said, for example, from August 2009 to November 2009, the U.S. unemployment rate rose from 9.7% to 10.0%, but by June 2010, it had fallen to 9.5%. At a glance, the changes between the percentages may seem small. But remember that the U.S. economy has about 155 million adults who either have jobs or are looking for them. A rise or fall of just 0.1% in the unemployment rate of 155 million potential workers translates into 155,000 people, which is roughly the total population of a